Key Moments
- Malta will introduce differentiated gaming tax rates by activity type from 1 October 2026, replacing the previous flat rate.
- A €3,000 annual studio broadcasting levy will apply to certain license holders starting on the same date.
- The scope of VAT exemption for gambling services will narrow significantly, impacting sports betting and live casino offers.
Introduction of New Gaming Tax Structure
Effective Thursday, 1 October 2026, Malta will overhaul its gambling tax policy with rates determined by each specific gaming activity. Consequently, this update eliminates the previous uniform 5% tax along with the accompanying gaming device levy. Furthermore, Legal Notice 84 of 2026 specifies the new tax regime following its publication in the Government Gazette on 1 April 2026. Shortly thereafter, Legal Notice 86 of 2026 initiated related updates regarding value-added tax under the VAT Act.
Meanwhile, the Malta Gaming Authority (MGA) and the Malta Tax and Customs Administration (MTCA) confirmed these measures in a joint statement on 2 April 2026. Specifically, officials highlighted that the reforms reflect direct sector input. Moreover, these changes align with the government’s 2026 Budget commitment to sustain and enhance the gaming industry’s long-term growth trajectory.
Detailed Breakdown of New Tax Rates
| Activity | Gaming Tax Rate | S&P 500 Status | Source |
|---|---|---|---|
| Type 1 gaming services | 15% of aggregate gaming revenue | N/A (National Tax Policy) | Legal Notice 84 of 2026 |
| Type 2, 3, and 4 gaming services | 10% of aggregate gaming revenue | N/A (National Tax Policy) | Legal Notice 84 of 2026 |
| Controlled gaming premises | 5% of aggregate gaming revenue | N/A (National Tax Policy) | Legal Notice 84 of 2026 |
| Junkets and junket events | 5% of aggregate gaming revenue | N/A (National Tax Policy) | Legal Notice 84 of 2026 |
In practice, Type 1 activities cover games of chance where a random number generator (RNG) determines outcomes, including casino-type games, virtual sports, house poker, and lotteries. Additionally, Type 2 represents house betting on event outcomes with operator-set odds. In contrast, Type 3 concerns commission-based activities such as peer-to-peer poker, bingo, and betting exchanges, whereas Type 4 encompasses controlled skill games.
Previously, authorities subjected qualifying activities to a standardized 5% tax plus an additional device levy. However, the MGA clarified that the updated framework consolidates these charges into a single tax defined by service category and delivery model. As a result, analysts at PwC Malta noted that the new structure calculates liabilities strictly based on revenue by service type.
Scope of Taxation Remains Malta-Focused
Crucially, this revised taxation framework exclusively covers services delivered to players physically located in Malta via land-based or online platforms. The joint agency statement outlines that, for remote services, tax liability directly follows the player’s establishment, permanent address, or habitual residence within Maltese territory.
Studio Levy Adjustments
Regulators will impose an annual studio broadcasting levy of €3,000 in advance from 1 October 2026. This fee applies to operators holding a critical gaming supply authorization who utilize dedicated sites for broadcasting or filming. Consequently, this figure replaces the previous €500 charge. Furthermore, unlike the prior setup where paying a device levy granted an exemption, operators must pay this new levy regardless of other fees or taxes.
Changes to VAT Exemption Criteria
Simultaneously, Legal Notice 86 of 2026 introduces a narrower VAT exemption under item 9 of Part Two of the Fifth Schedule to the VAT Act, limiting relief strictly to:
- Low-risk games defined in the Gaming Authorisations Regulations
- Occasionally held junket events
- Betting facilities operating exclusively during sports events at physical venues
According to Deloitte Malta, gambling services outside these narrow categories—including most sports betting and live casino operations—will generally incur Maltese VAT starting 1 October 2026. Therefore, major European online operators must adapt their financial models to absorb or pass on these added costs.
Finally, the MGA and MTCA stated that the new scope will naturally enable operators to recover eligible input VAT costs. In addition, both agencies indicated that they will issue further operational guidance to support the implementation process leading up to the October deadline.
S&P 500 Status Identification
Maltese Gaming Tax Legislation: Not Included in the S&P 500. This regulatory update represents national tax law enacted by the Government of Malta and enforced by the MGA and MTCA. It is not a publicly traded corporate equity or index constituent, and therefore holds no S&P 500 status.
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Daniel Williams
